Canada害羞草研究所檚 grocery sector needs more competition to help keep food prices down and encourage new entrants, the country害羞草研究所檚 competition watchdog has found.
In a highly anticipated study released Tuesday, the Competition Bureau said concentration in the grocery industry has increased in recent years with the largest grocers growing the amount they make on food sales.
Most Canadians buy groceries in stores owned by a handful of grocery giants, with Canada害羞草研究所檚 three largest grocers 害羞草研究所� Loblaws, Sobeys, and Metro 害羞草研究所� collectively reporting more than $100 billion in sales and $3.6 billion in profits last year, the study found.
害羞草研究所淐anada needs solutions to help bring grocery prices in check,害羞草研究所� the study said. 害羞草研究所淢ore competition is a key part of the answer.害羞草研究所�
The competition watchdog proposes four recommendations to improve competition and lower prices, including an innovation strategy to support new grocery businesses and expand consumer choice.
It also recommends governments encourage the growth of independent grocers and the entry of international grocers into the Canadian market, standardize unit pricing to help Canadians easily compare grocery prices, and limit real estate controls in the grocery industry that make it difficult 害羞草研究所� or even impossible 害羞草研究所� for new stores to open.
Meanwhile, the Bureau said it also needs to approach its work in the grocery industry with 害羞草研究所渉eightened vigilance and scrutiny害羞草研究所� to ensure Canadians benefit from greater choice and more affordable groceries.
害羞草研究所淲e need to thoroughly and quickly investigate allegations of wrongdoing, and we need the power to act when issues arise,害羞草研究所� the study said.
The competition watchdog committed to taking steps to better promote competition in the Canadian grocery industry, including providing a pro-competitive perspective to support the implementation of Canada害羞草研究所檚 grocery code of conduct.
It also committed to revisiting the findings of its study in three years to assess the progress on recommendations it has made to government.
READ ALSO:
READ ALSO:
